Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Harvinder Singh Mand ◽  
Manjit Singh
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Corporate Sector ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

scholarly journals FINANCIAL CRISIS AND LOCAL BANKS: A REVIEW OF BANK-FIRM RELATIONSHIPS IN ITALY

2017 ◽  
Vol 14 (3) ◽  
pp. 249-258 ◽  
Author(s):  
Andrea Quintiliani
Keyword(s):  
Financial Crisis ◽  
Empirical Analysis ◽  
Research Question ◽  
Banking System ◽  
Relationship Lending ◽  
Critical Elements ◽  
Risk Return ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper focuses on bank-firm relationship in an economic deeply changing environment. The objectives of the paper are two-fold: to understand, compared to the overall banking system, if the lending activities and economic-financial performances of Italian local banks have changed after the outbreak of the financial crisis; and to understand what are the conditions that allow to develop a model of a local bank capable of supporting the development routes of SMEs, by an appropriate risk/return profile. In order to answer the first research question, the paper presented an empirical analysis, covering the period 2007-2011, of Italian Cooperative Credit Banks (a particular category of local banks) compared with the system of bank groups with operability spread over much of the Italian territory and not. The empirical comparative analysis has the aim to see the effects of the crisis on the relationship bank-firm through the reading of the impact on the dynamics of lending and on the profiles of structure, riskiness, profitability and efficiency of the banks under examination. In order to provide an answer to the second research question, the paper provides some insight of evolutionary nature reflection in the bank-firm relationship. In accordance with the doctrinal postulates of the relationship lending the empirical analysis shows how the financial then real crisis has not induced Cooperative Credit Banks to restrict credit to local firms. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Based only on quantitative data of statement, the empirical analysis represents a limit in this kind of research. This paper is useful to stimulate the debate of experts as well as to focus on the studies of local banks in particular in the light of their anti-cyclic role. Even if abounding in subjects about local banks and relationship lending literature faces only marginally the effects of global crisis on business profiles of local banks.

Impact of Research and Development on Firm Performance

2014 ◽  
Vol 4 (1) ◽  
pp. 357 ◽  
Author(s):  
Aimen Ghaffar ◽  
Waseem Ahmed Khan
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Return On Assets ◽  
Return On Equity ◽  
Positive Correlation ◽  
Important Concept ◽  
Independent Variables ◽  
Earnings Per Share ◽  
The Impact ◽  
The Relationship

This study has been conducted to see the impact of research and development budget on the performance of the firms. Research and development is an increasingly important concept in order to have success in this era. The paper finds out the relationship between research and development and firm performance. Firm performance is measured through the ratios of return on assets, return on equity and the earnings per share of the firms. The data analyzed by using SPSS. Results confirmed the positive correlation between the dependent and the independent variables. Limitations of the study were shortage of time and studying of a single sector. In future, different other sectors can be studied to see the impact of research and development on their performance.

scholarly journals Effect of Macroeconomic Variables and Tax Rates on the Six ASEAN Countries Tax Ratio

2020 ◽  
Vol 10 (1) ◽  
pp. 45-52
Author(s):  
Effria Wijayanti Wahyuningsih ◽  
Milla Sepliana Setyowaty
Keyword(s):  
Stable Process ◽  
Least Square ◽  
Tax Rates ◽  
The Public ◽  
Asean Member ◽  
Panel Data Regression ◽  
Data Regression ◽  
Asean Countries ◽  
The Impact ◽  
The Relationship

The tax sector supports a stable process of economic growth and the tax ratio is considered an indicator that can be used to assess the performance of the taxation sector. This study examines the impact of macroeconomic and tax rates on the magnitude of the tax ratio in the case of six ASEAN member countries during the period 1998 to 2018. Data processing was performed using panel data regression using the Generalized Least Square (GLS) method with the STATA program. This study has very interesting results because inflation has a significant influence on the level of a country's tax ratio. The relationship between inflation and taxes is said to be positive, so any increase or decrease in inflation will also cause an increase or decrease also in the taxation sector. In other words, inflation and taxes move in the same direction but with different magnitudes. Countries with a stable macroeconomic situation will create greater opportunities for investment and more jobs are created. This will further increase the purchasing power of consumers and assume the tax burden will be easy for the public

scholarly journals ANALISIS PENGARUH HARGA EMAS, MARGIN, INFLASI DAN KURS DOLLAR TERHADAP PEMBIAYAAN MURABAHAH EMAS DI PERBANKAN SYARIAH INDONESIA PERIODE APRIL 2015-AGUSTUS 2019

2020 ◽  
Vol 7 (3) ◽  
pp. 610
Author(s):  
Ilyas Chaidir Rahmansyah ◽  
Lina Nugraha Rani
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banking ◽  
Independent Variables ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Data Regression ◽  
The Relationship

This research employed a quantitative approach to investigate the relationship between dependent and independent variables and to test the hypotheses. The data utilized in this research were secondary data from the official website of Bank Indonesia (BI), the Financial Services Authority (OJK), the Central Statistics Agency (BPS), gold price providers in Indonesia, and monthly BUS & UUS bank statements in Indonesia. The population in this study consisted of 14 BUS and 20 UUS which registered on the Financial Services Authority. This research used a sampling technique using predetermined criteria so that a sample of 4 BUS and 1 UUS were obtained from April 2015 to August 2019. Moreover, the analysis technique employed in this research was panel data regression with EViews 9 statistical tools. The results of this research describe that the price of gold, inflation and the exchange rate of the dollar do not have a significant impact on the financing of Murabahah Gold, but margin have a significant impact and negative correlated with Murabahah Gold in Islamic banking in Indonesia, especially among Islamic Commercial Banks and Sharia Business Units.Keywords: Gold Prices, Inflation, Dollar Exchange, Murabahah Gold, Islamic Banking

The Relationship Between Capital Structure and Performance in Islamic Rural Bank (BPRS): Evidence Indonesia

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Rofiul Wahyudi ◽  
Annisa Fithria ◽  
Sartini Wardiwiyono
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Advantages And Disadvantages ◽  
Panel Data Regression ◽  
Data Regression ◽  
Equity Ratio ◽  
Relationship Capital ◽  
And Performance ◽  
The Relationship ◽  
The Capital Structure

The capital structure is important for financial institutions including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. The main objective of this paper is to investigate the relationship capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio), but negatively affects ETA (equity to total Asset ratio). These findings indicate that there is an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity, and consider the negative relationship between liquidity creation and bank performance when making decisions.

scholarly journals Capital Structure of Companies Listed at the Warsaw Stock Exchange and the COVID-19 Pandemic Effect on Their Risk

2021 ◽  
Vol 4 (32) ◽  
pp. 153-166
Author(s):  
Jerzy Gajdka ◽  
Marek Szymański
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Financial Management ◽  
Stock Exchange ◽  
Idiosyncratic Risk ◽  
Total Risk ◽  
Panel Data Regression ◽  
Data Regression ◽  
Warsaw Stock Exchange ◽  
The Relationship

Subject: The financial management of companies is examined in the context of the COVID-19 pandemic. Specifically, the relationship between their capital structure and risk changes during the pandemic is scrutinised. The purpose of the article: To determine how companies’ total, systematic and idiosyncratic risks changed during the COVID-19 pandemic depending on their capital structure based on a sample of organisations listed at the Warsaw Stock Exchange. Methodology: The study involves the use of a panel data regression model. Results of the research: The COVID-19 pandemic had an impact on the risk of overleveraged companies and underleveraged ones alike. Its influence on their total risk was weaker among the underleveraged organisations. Regarding systematic risk, its levels did not generally change significantly in the wake of the pandemic, but idiosyncratic risk, only in the case of the overleveraged companies increased statistically significantly.

scholarly journals The Effects of Irreversibility and Uncertainty on Business Investments: A New View of Investment

2014 ◽  
Vol 5 (3) ◽  
pp. 7-20
Author(s):  
Katarína Belanová
Keyword(s):  
Empirical Analysis ◽  
Investment Decision ◽  
Firm Level ◽  
Factors Affecting ◽  
Real Options Approach ◽  
Investment Decision Making ◽  
Level Data ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This article presents a survey of recent theoretical, as well as empirical, contributions concerning business investments, which help to explain the investment decision making of companies. These contributions emphasize the relevance of idiosyncratic factors affecting investment decisions such as the degree of irreversibility and uncertainty, interactions between these factors may generate an opportunity cost equivalent to the exercise of an option and so they add an important dimension to the neoclassical theory of investment (also called standard or orthodox theory of investment). This theory has not recognized the important qualitative and quantitative implications of this interaction, what can explain some of its failures. We investigate the irreversibility of investments and the impact this has on the nature of the relationship between investment and uncertainty in the way of empirical analysis. The empirical analysis uses firm – level data and is based on a survey of 53 automotive suppliers, which was carried out during the year 2011. We find supportive evidence for the fact that uncertainty is negatively associated with planned investments of the companies surveyed, which remains true also in the presence of irreversibility. At the end we demonstrate the core of the real options approach in a form of a practical example.

scholarly journals Linear and nonlinear determinants of the performance of informal venture capitalists’ investments. An empirical analysis

2013 ◽  
Vol 2 (2) ◽  
pp. 24-43
Author(s):  
Vincenzo Capizzi
Keyword(s):  
Empirical Analysis ◽  
Rejection Rate ◽  
Venture Capitalists ◽  
Business Angels ◽  
Holding Period ◽  
Policy Interventions ◽  
The Impact ◽  
First Time ◽  
The Relationship ◽  
The Empirical Analysis

This paper is aimed at identifying and analyzing the contribution of the major drivers of the performance of informal venture capitalists’ investments. This study analyzes data on Italian transactions and personal features of Italian Business Angels gathered during 2007 – 2011 with the support of IBAN (Italian Business Angels Network). The econometric analysis investigates the returns of business angels’ investments and their major determinants (industry, exit strategy, experience, holding period, rejection rate, and year of divestiture). The major results are the followings: 1) differently from previous literature, the relationship between Experience and IRR is quadratic and significant; 2) for the first time, is confirmed by quantitative data that short Holding period (below 3 years) earn a lower IRR; 3) the Rejection rate is logarithmic and the impact on IRR is positive and significant. Finally, the outcomes of the empirical analysis performed in this study allow identifying new and concrete insights on possible policy interventions.

scholarly journals Listing in Special Corporate Governance Trading Segments and Accuracy of Analysts’ Forecasts in Brazil

2015 ◽  
Vol 8 (11) ◽  
pp. 127
Author(s):  
Miguel Carlos Ramos Dumer ◽  
Antonio Lopo Martinez
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Literature Review ◽  
Statistical Relationship ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Thomson Reuters ◽  
Panel Data Regression ◽  
Data Regression ◽  
One Year

<p>The aim of this article is to investigate whether there is a relationship between being listed in a trading segment of the BM&amp;FBovespa requiring enhanced corporate governance and the accuracy of analysts’ forecasts. For this purpose, besides a literature review to establish the dependent and independent variables, we obtained data on the earnings per share estimated by analysts from the I/B/E/S database of Thomson Reuters and the actual figures one year after the forecast from the Economática database. We then used panel data regression with robust fixed effect, covering a period of 20 quarters (2007-1 to 2011-4). The results did not reveal a significant statistical relationship between listing in one of the three special trading segments of the BM&amp;FBovespa and the accuracy of analysts’ forecasts. </p>

scholarly journals Determinants of Capital Structure: Evidence From Malaysian Food and Beverage Firms

2019 ◽  
Vol 10 (5) ◽  
pp. 45
Author(s):  
Mohd Faizal Basri ◽  
Fitri Shuhaida Shoib ◽  
Surianor Kamaralzaman
Keyword(s):  
Capital Structure ◽  
Least Square ◽  
Ordinary Least Square ◽  
Independent Variables ◽  
Panel Data Regression ◽  
Tangible Assets ◽  
Data Regression ◽  
Food And Beverage ◽  
Asset Growth ◽  
Total Observation

This paper investigates the firm-specific elements, which are profitability, growth, tangible assets and liquidity in determining the capital structure of Food and Beverage (F&B) firms in Malaysia. The research employed panel data regression model based on ordinary least square (OLS) method. The sample of research consists of eight firms listed in the food producer segment in Bursa Malaysia for the period between 2013 and 2018, with a total observation of 48 firms-years. Debt to equity was chosen as dependent variable. On the other hand, profitability, asset growth, tangibility of assets, and liquidity were selected as independent variables. The findings showed that profitability and tangibility of assets are positively related to debt to equity. Meanwhile, growth of assets and liquidity were insignificant to the dependent variable. The trade-off theory of capital structure is very much applicable to the F&B firms in Malaysia due to the fact that profitability and tangibility of assets have significant relationship with debt.

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